Customs' one-stop shop for tax-free donations elicits outcry

The government has set up a one-stop shop system for tax-free foreign donations in an attempt to manage the deluge of assistance from overseas. But critics say it sends the wrong signal when the government collects taxes on donations for calamity victims not sent through official channels. “It's our initiative to prevent unscrupulous persons to take advantage of the crisis situation. This is a safety net mechanism. This is also to prevent smuggling," Customs Commissioner Napoleon Morales said. The one-stop shop system is intended to ease the release and delivery of goods for victims of Storm “Ondoy". Morales said the one-stop shop desk will be composed of representatives of the DSWD, National Disaster Coordinating Council, Presidential Management Staff, Department of Finance, Department of Health, Department of Environment and Natural Resources and the Bureau of Food and Drugs, among others.“Hindi sisingilan ng buwis o kukumpiskahan ng Bureau of Customs ang mga donasyon ng pagkain at kagamitan mula sa ibang bayan, basta't ito ay naka-assign sa DSWD," she said in her order. This created some confusion because the country’s Tariff and Customs Code allows nonprofit, welfare, religious and charitable organizations registered with the Securities and Exchange Commission and duly licensed or accredited to receive duty-free donations. Morales belied reports that foreign donations for “Ondoy" victims not consigned though DSWD are being held at Customs points at airports and ports. He said what his office has received so far was a planeload of donations from the U.S. government consigned to the Philippine National Red Cross and released Friday morning. He said he has been informed of planeloads of donations coming from Taiwan and Italy. The Australian government, he said, will also be donating rubber boats to the Philippine Coast Guard. “As of now, there has been no arrival of donations from foreign NGOs yet," he said. The DOF earlier lifted the ban on used clothes intended for victims of “Ondoy." Morales said, however, the release of the goods must be coursed through the DSWD for fumigation.. Fr. Benjamin E. Alforque, president of the U.S.-based National Alliance for Filipino Concerns, said, “Taxing donations that do not go through the DSWD is only a manifestation of further exploitation of Filipinos overseas by the Philippine government, which takes pride in its 'Bagong Bayani,’ but is actually doing otherwise. This move can only lead to our Kababayans getting discouraged in sending much needed help to the motherland, whose only concern is to extend aid to their own families and to other distressed fellow Filipinos during these trying times." “These steps being taken by Arroyo to control the outpouring of support to the Philippines is a display of arrogance, making her administration look good and undermining efforts of people's organizations whose relief efforts are made possible even without help from her government," he said. John Leonard Monterona, regional coordinator of Migrante in the Middle East, finds the directive “unreasonable" because Filipino communities prefer to entrust their donations to Migrante and other people's organizations rather than to government posts or agencies. Sen. Francis “Chiz" Escudero, chair of the Senate ways and means committee, is concerned that the DSWD would not be able to handle the outpouring of donations from Filipino groups abroad and would just delay the assistance. Escudero also said many Filipinos abroad distrust the government and do not want to entrust their donations through its agencies. Sen. Alan Cayetano said, “At this point in time, we need all the help we can get. And although the DSWD is one of the most trusted departments, some would simply rather donate directly through their partner organizations." Makati Mayor Jejomar Binay, president of the United Opposition, urged national government agencies to exercise flexibility in processing donations for calamity victims. “It is indeed a sad commentary when most overseas Filipinos would rather donate to private charitable groups than to the national government. But this is not the time for the national government to be sensitive or to assert itself, but rather to show flexibility," he said. The Makati mayor supports a move to exempt from the donor’s tax calamity donations addressed to private entities. He said it sends a wrong signal when the national government is seen as profiting from a calamity by collecting taxes on donation for calamity victims. (VERA Files is put out by veteran journalists taking a deeper look into current issues. Vera is Latin for “true.")